On-Line Bar Review

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Intellectual Property

THE 1997 RULES OF
CIVIL PROCEDURE

[Took
effect on
July 1, 1997, in accordance with the resolution in Bar Matter No. 803
adopted
by the Supreme Court in Baguio City on April 8, 1997]

PROVISIONAL
REMEDIES

[Rules 57 to 61]

RULE
57

PRELIMINARY
ATTACHMENT

Section 1. Grounds upon which
attachment may issue.

At the commencement of
the
action or at any time before entry of judgment, a plaintiff or any
proper
party may have the property of the adverse party attached as security
for
the satisfaction of any judgment that may be recovered in the following
cases:

(a) In an action for
the
recovery of a specified amount of money or damages, other than moral
and
exemplary, on a cause of action arising from law, contract,
quasi-contract,
delict or quasi-delict against a party who is about to depart from the
Philippines which intent to defraud his creditors;

(b) In an action
for money
or property embezzled or fraudulently misapplied or converted to his
own
use by a public officer, or an officer of a corporation, or an
attorney,
factor, broker agent, or clerk, in the course of his employment as
such,
or by other person in a fiduciary capacity, or for a willful violation
of duty;

(c) In an action
to recover
the possession of property unjustly or fraudulently taken, detained or
converted, when the property, or any part thereof, has been concealed,
removed, or disposed of to prevent its being found or taken by the
applicant
or an authorized person;

(d) In an action
against
a party who has been guilty of a fraud in contracting the debt or
incurring
the obligation upon which the action is brought, or in the performance
thereof;

(e) In an action
against
a party who has removed or disposed of his property, or is about to do
so, with intent to defraud his creditors; or

(f) In an action
against
a party who does not reside and is not found in the Philippines, or on
whom summons may be served by publication.

Sec. 2. Issuance and contents
of order.

An order of attachment
may
be issued either ex parte or upon motion with notice and hearing by the
court in which the action is pending, or by the Court of Appeals or the
Supreme Court, and must require the sheriff of the court to attach so
much
of the property in the Philippines of the party against whom it is
issued,
not exempt from execution, as may be sufficient to satisfy the
applicant's
demand, unless such party makes deposit or gives a bond as hereinafter
provided in an amount equal to that fixed in the order, which may be
the
amount sufficient to satisfy the applicant's demand or the value of the
property to be attached as stated by the applicant, exclusive of costs.
Several writs may be issued at the same time to the sheriffs of the
courts
of different judicial regions.

Sec. 3. Affidavit and bond required.

An order of attachment
shall
be granted only when it appears by the affidavit of the applicant, or
of
some other person who personally knows the facts, that a sufficient
cause
of action exists, that the case is one of those mentioned in section 1
hereof, that there is no other sufficient security for the claim sought
to be enforced by the action, and that the amount due to the applicant,
or the value of the property the possession of which he is entitled to
recover, is as much as the sum for which the order is granted above all
legal counterclaims. The affidavit, and the bond required by the next
succeeding
section, must be duly filed with the court before the order issues.

Sec. 4. Condition of applicant's
bond.

The party applying for
the
order must thereafter give a bond executed to the adverse party in the
amount fixed by the court in its order granting the issuance of the
writ,
conditioned that the latter will pay all the costs which may be
adjudged
to the adverse party and all damages which he may sustain by reason of
the attachment, if the court shall finally adjudged that hte applicant
was not entitled there to.

Sec. 5. Manner of attaching
property.

The sheriff enforcing
the
writ shall without delay and with all reasonable diligence attach, to
await
judgment and execution in the action, only so much of the property in
the
Philippines of the party against whom the writ is issued, not exempt
from
execution, as may be sufficient to satisfy the applicant's demand,
unless
the former makes a deposit with the court from which the writ is
issued,
or gives a counterbond executed to the applicant, in an amount equal to
the bond fixed by the court in the order of attachment or to the value
of the property to be attached, exclusive of costs. No levy on
attachment
pursuant to the writ issued under section 2 hereof shall be enforced
unless
it is preceded, or contemporaneously accompanied, by service of
summons,
together with a copy of the complaint, the application for attachment,
the applicant's affidavit and bond, and the order and writ of
attachment,
on the defendant within the Philippines.

The requirement of
prior
or contemporaneous service of summons shall not apply where the summons
could not be served personally or by substituted service despite
diligent
efforts, or the defendant is a resident of the Philippines temporarily
absent therefrom, or the defendant is a non-resident of the
Philippines,
or the action is one in rem or quasi in rem.

Sec. 6. Sheriff's return.

After enforcing the
writ,
the sheriff must likewise without delay make a return thereon to the
court
from which the writ issued, with a full statement of his proceedings
under
the writ and a complete inventory of the property attached, together
with
any counter-bond given by the party against whom attachment is issued,
and serve copies thereof on the applicant.

Sec. 7. Attachment of real and
personal property; recording thereof.

Real and personal
property
shall be attached by the sheriff executing the writ in the following
manner:

(a) Real property,
or growing
crops thereon, or any interest therein, standing uponthe record of the
registry of deed of the province in the name of the party against whom
attachment is issued, or not appearing at all upon such records, or
belonging
to the party against whom attachment is issued and held by any other
person,
or standing on the records of the registry of deeds in the name of any
other person, by filing with the registry of deeds a copy of the order,
together with a description of the property attached, and a notice that
it is attached, or that such real property and any interest therein
held
by or standing in the name of such other person are attached, and by
leaving
a copy of such order, description, and notice with the occupant of the
property, if any, or with such other person or his agent if found
within
the province. Where the property has been brought under the operation
of
either the Land Registration Act or the Property Registration Decree,
the
notice shall contain a reference to the number of the certificate of
title,
the volume and page in the registration book where the certificate is
registered,
and the registered owner or owners thereof.

The registrar of
deed must
index attachments filed under this section in the names of the
applicant,
the adverse party, or the person by whom the property is held or in
whose
name it stands in the records. If the attachment is not claimed on the
entire area of the land covered by the certificate of title, a
description
sufficiently accurate for the identification of the land or interest to
be affected shall be included in the registration of such attachment;

(b) Personal
property capable
of manual delivery, by taking and safely keeping it in his custody,
after
issuing the corresponding receipt therefor;

(c) Stocks or
shares, or
an interest in stocks or shares, of any corporation or company, by
leaving
with the president or managing agent thereof, a copy of the writ, and a
notice stating that the stock or interest of the party against whom the
attachment is issued is attached in pursuance of such writ;

(d) Debts and
credits, including
bank deposits, financial interest, royalties, commissions, and other
personal
property not capable of manual delivery, by leaving with the person
owing
such debts, or having in his possession or under his control, such
credits
or other personal property, or with his agent, a copy of the writ, and
notice that the debts owing by him to the party against whom attachment
is issued, and the credits and other personal property in his
possession,
or under his control, belonging to said party, are attached in
pursuance
of such writ;

(e) The interest
of the party
whom attachment is issued in property belonging to the estate of the
decedent,
wether as heir, legatee, or devisee, by serving the executor or
administrator
or other personal representative of the decedent with a copy of the
writ
and notice that said interest is attached. A copy of said writ of
attachment
and of said notice shall also be filed in the office of the clerk of
the
court in which said estate is being settled and served upon the heir,
legatee
or devisee concerned.

If the property
sought to
be attached is in custodia legis, a copy of the writ of attachment
shall
be filed with the proper court or quasi-judicial agency, and notice of
the attachment served upon the custodian of such property.

Sec. 8. Effect of attachment
of debts, credits and all other similar personal property.

All persons having in
their
possession or under their control any credits or other similar personal
property belonging to the party against whom attachment is issued, or
owing
any debts to him, at the time of service upon them of the copy of the
writ
of attachment and notice as provided in the last preceding section,
shall
be liable to the applicant for the amount of such credits, debts or
other
similar personal property, until the attachment is discharged, or any
judgment
recovered by him is satisfied, unless such property is delivered or
transferred,
or such debts are paid, to the clerk, sheriff, or other proper officer
of the court issuing the attachment.

Sec. 9. Effect of attachment
of interest in property belonging to the estate of a decedent.

The attachment of the
interest
of an heir, legatee, or devisee in the property belonging to the estate
of a decedent shall not impair the power of the executor,
administrator,
or other personal representative of the decedent over such property for
the purpose of administration. Such personal representative, however,
shall
report the attachment to the court when any petition for distribution
is
filed, and in the order made upon such petition, distribution may be
awarded
to such heir, legatee, or devisee, but the property attached shall be
ordered
delivered to the sheriff making the levy, subject to the claim of such
heir, legatee, or devisee, or any person claiming under him.

Sec. 10. Examination of party
whose property is attached and persons indebted to him or controlling
his
property; delivery of property to sheriff.

Any person owing debts
to
the party whose property is attached or having in his possession or
under
his control any credit or other personal property belonging to such
party,
may be required to attend before the court in which the action is
pending,
or before a commissioner appointed by the court, and be examine on oath
respecting the same. The party whose property is attached may also be
required
to attend for the purpose of giving information respecting his
property,
and may be examined on oath. The court may, after such examination,
order
personal property capable of manual delivery belonging to him, in the
possession
of the person so required to attend before the court, to be delivered
to
the clerk of the court or sheriff on such terms as may be just, having
reference to any lien thereon or claim against the same, to await the
judgment
in the action.

Sec. 11. When attached property
may be sold after levy on attachment and before entry of judgment.

Whenever it shall be
made
to appear to the court in which the action is pending, upon hearing
with
notice to both parties, that the party attached is perishable, or that
the interests of all the parties to the action will be will be
subserved
by the sale thereof, the court may order such property to be sold at
public
auction in such manner as it may direct, and the proceeds of such sale
to be deposited in court to abide the judgment in the action.

Sec. 12. Discharge of attachment
upon giving counterbond.

After a writ of
attachment
has been enforced, the party whose property has been attached, or the
person
appearing on his behalf, may move for the discharge of the attachment
wholly
or in part on the security given. The court shall, after due notice and
hearing, order the discharge of the attachment if the movant makes a
cash
deposit, or files a counter-bond executed to the attaching party with
the
clerk of the court where the application is made, in an amount equal to
that fixed by the court in the order of attachment, exclusive of costs.
But if the attachment is sought to be discharged with respect to a
particular
property, the counter-bond shall be equal to the value of that property
as determined by the court. In either case, the cash deposit or the
counter-bond
shall secure the payment of any judgment that the attaching party may
recover
in the action. A notice of the deposit shall forth with be served on
the
attaching party. Upon the discharge of an attachment in accordance with
the provisions of this section, the property attached, or the proceeds
of any sale thereof, shall be delivered to the party making the deposit
or giving the counter-bond, or to the person appearing on his behalf,
the
deposit or counter-bond aforesaid standing in place of the property so
released. Should such counter-bond for any reason to be found to be or
become insufficient, and the party furnishing the same fail to file an
additional counter-bond, the attaching party may apply for a new order
of attachment.

Sec. 13. Discharge of attachment
on other grounds.

The party whose
property
has been ordered attached may file a motion with the court in which the
action is pending, before or after levy or even after the release of
the
attached property, for an order to set aside or discharged the
attachment
on the ground that the same was improperly or irregularly issued or
enforced,
or that the bond is insufficient. If the attachment is excessive, the
discharge
shall be limited to the excess. If the motion be made on affidavits on
the part of the movant but not otherwise, the attaching party may
oppose
the motion by counter-affidavits or other evidence in addition to that
on which the attachment was made. After due notice and hearing, the
court
shall order the setting aside or the corresponding discharge of the
attachment
if it appears that it was improperly or irregularly issued or enforced,
or that the bond is insufficient, or that the attachment is excessive,
and the defect is not cured forthwith.

Sec. 14. Proceedings where property
claimed by third person.

If the property
attached
is claimed by any person other than the party against whom attachment
had
been issued or his agent, and such person makes an affidavit of his
title
thereto, or right to the possession thereof, stating the grounds of
such
right or title, and serves such affidavit upon the sheriff while the
latter
has possession of the attached party, and a copy thereof upon the
attaching
party, the sheriff shall not be bound to keep the property under
attachment,
unless the attaching party or his agent, on demand of the sheriff,
shall
file a bond approved by the court to indemnify the third-party claimant
in a sum not less than the value of the property levied upon. In case
of
disagreement as to such value, the same shall be decided by the court
issuing
the writ of attachment. No claim for damages for the taking or keeping
of the property may be enforced against the bond unless the action
therefor
is filed within one hundred twenty (120) days from the date of the
filing
of the bond.

The sheriff shall
not be
liable for damages for the taking or keeping of such property, to any
such
third-party claimant, if such bond shall be filed. Nothing herein
contained
such prevent such claimant or any third person from vindicating his
claim
to the property, or prevent the attaching party from claiming damages
against
a third-party claimant who filed a frivolous or plainly spurious claim,
in the same or a separate action.

When the writ of
attachment
is issued in favor of the Republic of the Philippines, or any officer
duly
representing it, the filing of such bond shall not be required, and in
case the sheriff is sued for damages as a result of the attachment, he
shall be represented by the Solicitor General, and if held liable
therefor,
the actual damages adjudged by the court shall be paid by the National
Treasurer out of the funds to be appropriated for the purpose.

Sec. 15. Satisfaction of judgment
out of property attached; return of sheriff.

If judgment be
recovered
by the attaching party and execution issue thereon, the sheriff may
cause
the judgment to be satisfied out of the property attached, if it be
sufficient
for that purpose in the following manner:

(a) By paying to the
judgment
obligee the proceeds of all sales of perishable or other property sold
in pursuance of the order of the court, or so much as shall be
necessary
to satisfy the judgment;

(b) If any
balance remains
due, by selling so much of the property, real or personal, as may be
necessary
to satisfy the balance, if enough for that purpose remain in the
sheriff's
hands, or in those of the clerk of the court;

(c) By collecting
from all
persons having in their possession credits belonging to the judgment
obligor,
or owing debts to the latter at the time of the attachment of such
credits
or debts, the amount of such credits and debts as determine by the
court
in the action, and stated in the judgment, and paying the proceeds of
such
collection over to the judgment obligee.

The sheriff shall
forthwith
make a return in writing to the court of his proceedings under this
section
and furnish the parties with copies thereof.

Sec. 16. Balance due collected
upon an execution; excess delivered to judgment obligor.

After realizing upon
all
the property attached, including the proceed of any debts or credits
collected,
and applying the proceeds to the satisfaction of the judgment, less the
expenses of proceedings upon the judgment, any balance shall remain
due,
the sheriff must proceed to collect such balance as upon ordinary
execution.
Whenever the judgment shall have been paid, the sheriff, upon
reasonable
demand, must return to the judgment obligor the attached property
remaining
in his hands, and any proceeds of the sale of the property attached not
applied to the judgment.

Sec. 17. Recovery upon the counter-bond.

When the judgment has
become
executory, the surety or sureties on any counter-bond given pursuant to
the provisions of this Rule to secure the payment of the judgment shall
become charged on such counter-bond and bound to pay the judgment
obligee
upon demand the amount due under the judgment, which amount may be
recovered
from such surety or sureties after notice and summary hearing in the
same
action.

Sec. 18. Disposition of money
deposited.

Where the party
against
whom attachment had been issued has deposited money instead of giving
counter-bond,
it shall be applied under the direction of the court to the
satisfaction
of any judgment rendered in favor of the attaching party, and after
satisfying
the judgment the balance shall be rendered to the depositor or his
assignee.
If the judgment is in favor of the party against whom attachment was
issued,
the whole sum deposited must be refunded to him or his assignee.

Sec. 19. Disposition of attache
property where judgment is for party against whom attachment was issued.

If judgment be
rendered
against the attaching party, all the proceeds of sales and money
collected
or received by the sheriff, under the order of attachment, and all
property
attached remaining in any such officer's hands, shall be delivered to
the
party against whom attachment was issued, and the order of attachment
discharged.

Sec. 20. Claim for damages on
account of improper, irregular or excessive attachment.

An application for
damages
on account of improper, irregular or excessive attachment must be filed
before the trial or before the trial or before appeal is perfected or
before
the judgment becomes executory, with due notice to the attaching party
and his surety or sureties, setting forth the facts showing his right
to
damages and the amount thereof. Such damages may be awarded only after
proper hearing and shall be included in the judgment on the main case.

If the judgment of
the appellate
court be favorable to the party against whom the attachment was issued,
he must claim damages sustained during the pendency of the appeal by
filing
an application in the appellate court, with notice to the party in
whose
favor the attachment was issued or his surety or sureties, before the
judgment
of the appellate court becomes executory. The appellate court may allow
the application to be heard and decided by the trial court.

Nothing herein
contained
shall prevent the party against whom the attachment was issued from
recovering
in the same action the damages awarded to him from any property of the
attaching party not exempt from execution should the bond or deposit
given
by the latter be insufficient or fail to fully satisfy the award.

RULE
58

PRELIMINARY
INJUNCTION

Section 1. Preliminary injunction
defined; classes.

A preliminary
injunction
is an order granted at any stage of an action or proceeding prior to
the
judgment or final order, requiring a party or a court, agency or a
person
to refrain from a particular act or acts. It may also require the
performance
of a particular act or acts, in which case it shall be known as a
preliminary
mandatory injunction.

Sec. 2. Who may grant preliminary
injunction.

A preliminary
injunction
may be granted by the court where the action or proceeding is pending.
If the action or proceeding is pending in the Court of Appeals or in
the
Supreme Court, it may be issued by said court or any member thereof.

Sec. 3. Grounds for issuance
of preliminary injunction.

A preliminary
injunction
may be granted when it is established:

(a) That the
applicant is
entitled to the relief demanded, and the whole or part of such relief
consists
in restraining the commission or continuance of the act or acts
complained
of, or in requiring the performance of an act or acts, either for a
limited
period or perpetually;

(b) That the
commission,
continuance or non-performance of the act or acts complained of during
the litigation would probably work injustice to the applicant; or

(c) That a party,
court,
agency or a person is doing, threatening, or is attempting to do, or is
procuring or suffering to be done, some act or acts probably in
violation
of the rights of the applicant respecting the subject of the action or
proceeding, and tending to render the judgment ineffectual.

A preliminary
injunction
or temporary restraining order may be granted only when:

(a) The application
in the
action or proceeding is verified, and shows facts entitling the
applicant
to the relief demanded; and

(b) Unless
exempted by the
court, the applicant files with the court where the action or
proceeding
is pending, a bond executed to the party or person enjoined, in an
amount
to be fixed by the court, to the effect that the applicant will pay to
such party or person all damages which he may sustain by reason of the
injunction or temporary restraining order if the court should finally
decide
that the applicant was not entitled thereto. Upon approval of the
requisite
bond, a writ of preliminary injunction shall be issued.

(c) When an
application for
a writ of preliminary injunction or a temporary restraining order is
included
in a complaint or any initiatory pleading, the case, if filed in a
multiple-sala
court, shall be raffled only after notice to and in the presence of the
adverse party or the person to be enjoined. In any event, such notice
shall
be preceded, or contemporaneously accompanied, by service of summons,
together
with a copy of the complaint or initiatory pleading and the applicant’s
affidavit and bond, upon the adverse party in the Philippines.

However, where
the summons
could not be served personally or by substituted service despite
diligent
efforts, or the adverse party is a resident of the Philippines
temporarily
absent therefrom or is a nonresident thereof, the requirement of prior
or contemporaneous service of summons shall not apply.

(d) The
application for a
temporary restraining order shall thereafter be acted upon only after
all
parties are heard in a summary hearing which shall be conducted within
twenty-four (24) hours after the sheriff’s return of service and/or the
records are received by the branch selected by raffle and to which the
records shall be transmitted immediately.

Sec. 5. Preliminary injunction
not granted without notice; exception.

No preliminary
injunction
shall be granted without hearing and prior notice to the party or
person
sought to be enjoined. If it shall appear from facts shown by
affidavits
or by the verified application that great or irreparable injury would
result
to the applicant before the matter can be heard on notice, the court to
which the application for preliminary injunction was made, may issue ex
parte a temporary restraining order to be effective only for a period
of
twenty (20) days from service on the party or person sought to be
enjoined,
except as herein provided. Within the said twenty-day period, the court
must order said party or person to show cause, at a specified time and
place, why the injunction should not be granted, determine within the
same
period whether or not the preliminary injunction shall be granted, and
accordingly issue the corresponding order.

However, and
subject to the
provisions of the preceding sections, if the matter is of extreme
urgency
and the applicant will suffer grave injustice and irreparable injury,
the
executive judge of a multiple-sala court or the presiding judge of a
single-sala
court may issue ex parte a temporary restraining order effective for
only
seventy-two (72) hours from issuance but he shall immediately comply
with
the provisions of the next preceding section as to service of summons
and
the documents to be served therewith. Thereafter, within the aforesaid
seventy-two (72) hours, the judge before whom the case is pending shall
conduct a summary hearing to determine whether the temporary
restraining
order shall be extended until the application for preliminary
injunction
can be heard. In no case shall the total period of effectivity of the
temporary
restraining order exceed twenty (20) days, including the original
seventy-two
hours provided herein.

In the event that
the application
for preliminary injunction is denied or not resolved within the said
period,
the temporary restraining order is deemed automatically vacated. The
effectivity
of a temporary restraining order is not extendible without need of any
judicial declaration to that effect and no court shall have authority
to
extend or renew the same on the same ground for which it was issued.

However, if issued
by the
Court of Appeals or a member thereof, the temporary restraining order
shall
be effective for sixty (60) days from service on the party or person
sought
to be enjoined. A restraining order issued by the Supreme Court or a
member
thereof shall be effective until further orders.

Sec. 6. Grounds for objection
to, or for motion of dissolution of, injunction or restraining order.

The application for
injunction
or restraining order may be denied, upon a showing of its
insufficiency.
The injunction or restraining order may also be denied, or, if granted,
may be dissolved, on other grounds upon affidavits of the party or
person
enjoined, which may be opposed by the applicant also by affidavits. It
may further be denied, or, if granted, may be dissolved, if it appears
after hearing that although the applicant is entitled to the injunction
or restraining order, the issuance or continuance thereof, as the case
may be, would cause irreparable damage to the party or person enjoined
while the applicant can be fully compensated for such damages as he may
suffer, and the former files a bond in an amount fixed by the court
conditioned
that he will pay all damages which the applicant may suffer by the
denial
or the dissolution of the injunction or restraining order. If it
appears
that the extent of the preliminary injunction or restraining order
granted
is too great, it may be modified.

Sec. 7. Service of copies of
bonds; effect of disapproval of same.

The party filing a
bond
in accordance with the provisions of this Rule shall forthwith serve a
copy of such bond on the other party, who may except to the sufficiency
of the bond, or of the surety or sureties thereon. If the applicant’s
bond
is found to be insufficient in amount, or if the surety or sureties
thereon
fail to justify, and a bond sufficient in amount with sufficient
sureties
approved after justification is not filed forthwith, the injunction
shall
be dissolved. If the bond of the adverse party is found to be
insufficient
in amount, or the surety or sureties thereon fail to justify a bond
sufficient
in amount with sufficient sureties approved after justification is not
filed forthwith, the injunction shall be granted or restored, as the
case
may be.

Sec. 8. Judgment to include
damages against party and sureties.

At the trial, the
amount
of damages to be awarded to either party, upon the bond of the adverse
party, shall be claimed, ascertained, and awarded under the same
procedure
prescribed in section 20 of Rule 57.

Sec. 9. When final injunction
granted.

If after the trial of
the
action it appears that the applicant is entitled to have the act or
acts
complained of permanently enjoined, the court shall grant a final
injunction
perpetually restraining the party or person enjoined from the
commission
or continuance of the act or acts or confirming the preliminary
mandatory
injunction.

RULE
59

RECEIVERSHIP

Section 1. Appointment
of receiver.

Upon a verified
application,
one or more receivers of the property subject of the action or
proceeding
may be appointed by the court where the action is pending, or by the
Court
of Appeals or by the Supreme Court, or a member thereof, in the
following
cases:

(a) When it appears
from
the verified application, and such other proof as the court may
require,
that the party applying for the appointment of a receiver has an
interest
in the property or fund which is the subject of the action or
proceeding,
and that such property or fund is in danger of being lost, removed, or
materially injured unless a receiver be appointed to administer and
preserve
it;

(b) When it
appears in an
action by the mortgagee for the foreclosure of a mortgage that the
property
is in danger of being wasted or dissipated or materially injured, and
that
its value is probably insufficient to discharge the mortgage debt, or
that
the parties have so stipulated in the contract of mortgage;

(c) After
judgment, to preserve
the property during the pendency of an appeal, or to dispose of it
according
to the judgment, or to aid execution when the execution has been
returned
unsatisfied or the judgment obligor refuses to apply his property in
satisfaction
of the judgment, or otherwise to carry the judgment into effect;

(d) Whenever in
other cases
it appears that the appointment of a receiver is the most convenient
and
feasible means of preserving, administering, or disposing of the
property
in litigation.

During the
pendency of an
appeal, the appellate court may allow an application for the
appointment
of a receiver to be filed in and decided by the court of origin and the
receiver appointed to be subject to the control of said court.

Sec. 2. Bond on appointment
of receiver.

Before issuing the
order
appointing a receiver the court shall require the applicant to file a
bond
executed to the party against whom the application is presented, in an
amount to be fixed by the court, to the effect that the applicant will
pay such party all damages he may sustain by reason of the appointment
of such receiver in case the applicant shall have procured such
appointment
without sufficient cause; and the court may, in its discretion, at any
time after the appointment, require an additional bond as further
security
for such damages.

Sec. 3. Denial of application
or discharge of receiver.

The application may be
denied,
or the receiver discharged, when the adverse party files a bond
executed
to the applicant, in an amount to be fixed by the court, to the effect
that such party will pay the applicant all damages he may suffer by
reason
of the acts, omissions, or other matters specified in the application
as
ground for such appointment. The receiver may also be discharged if it
is shown that his appointment was obtained without sufficient cause.

Sec. 4. Oath and bond of receiver.

Before entering upon
his
duties, the receiver shall be sworn to perform them faithfully, and
shall
file a bond, executed to such person and in such sum as the court may
direct,
to the effect that he will faithfully discharge his duties in the
action
or proceeding and obey the orders of the court.

Sec. 5. Service of copies of
bonds; effect of disapproval of same.

The person filing a
bond
in accordance with the provisions of this Rule shall forthwith serve a
copy thereof on each interested party, who may except to its
sufficiency
or of the surety or sureties thereon. If either the applicant’s or the
receiver’s bond is found to be insufficient in amount, or if the surety
or sureties thereon fail to justify, and a bond sufficient in amount
with
sufficient sureties approved after justification is not filed
forthwith,
the application shall be denied or the receiver discharged, as the case
may be. If the bond of the adverse party is found to be insufficient in
amount or the surety or sureties thereon fail to justify, and a bond
sufficient
in amount with sufficient sureties approved after justification is not
filed forthwith, the receiver shall be appointed or re-appointed, as
the
case may be.

Sec. 6. General powers of receiver.

Subject to the control
of
the court in which the action or proceeding is pending, a receiver
shall
have the power to bring and defend, in such capacity, actions in his
own
name; to take and keep possession of the property in controversy; to
receive
rents; to collect debts due to himself as receiver or to the fund,
property,
estate, person, or corporation of which he is the receiver; to compound
for and compromise the same; to make transfers; to pay outstanding
debts;
to divide the money and other property that shall remain among the
persons
legally entitled to receive the same; and generally to do such acts
respecting
the property as the court may authorize. However, funds in the hands of
a receiver may be invested only by order of the court upon the written
consent of all the parties to the action.

No action may be
filed by
or against a receiver without leave of the court which appointed him.

Sec. 7. Liability for refusal
or neglect to deliver property to receiver.

A person who refuses
or
neglects, upon reasonable demand, to deliver to the receiver all the
property,
money, books, deeds, notes, bills, documents and papers within his
power
or control, subject of or involved in the action or proceeding, or in
case
of disagreement, as determined and ordered by the court, may be
punished
for contempt and shall be liable to the receiver for the money or the
value
of the property and other things so refused or neglected to be
surrendered,
together with all damages that may have been sustained by the party or
parties entitled thereto as a consequence of such refusal or neglect.

Sec. 8. Termination of receivership;
compensation of receiver.

Whenever the court,
motu
proprio or on motion of either party, shall determine that the
necessity
for a receiver no longer exists, it shall, after due notice to all
interested
parties and hearing, settle the accounts of the receiver, direct the
delivery
of the funds and other property in his possession to the person
adjudged
to be entitled to receive them, and order the discharge of the receiver
from further duty as such. The court shall allow the receiver such
reasonable
compensation as the circumstances of the case warrant, to be taxed as
costs
against the defeated party, or apportioned, as justice requires.

Sec. 9. Judgment to include
recovery against sureties.

The amount, if any, to
be
awarded to any party upon any bond filed in accordance with the
provisions
of this Rule, shall be claimed, ascertained, and granted under the same
procedure prescribed in section 20 of Rule 57.

RULE
60

REPLEVIN

Section 1. Application.

A party praying for
the
recovery of possession of personal property may, at the commencement of
the action or at any time before answer, apply for an order for the
delivery
of such property to him, in the manner hereinafter provided.

Sec. 2. Affidavit and bond.

The applicant must
show
by his own affidavit or that of some other person who personally knows
the facts:

(a) That the
applicant is
the owner of the property claimed, particularly describing it, or is
entitled
to the possession thereof;

(b) That the
property is
wrongfully detained by the adverse party, alleging the cause of
detention
thereof according to the best of his knowledge, information, and belief;

(c) That the
property has
not been distrained or taken for a tax assessment or a fine pursuant to
law, or seized under a writ of execution or preliminary attachment, or
otherwise placed under custodia legis, or if so seized, that it is
exempt
from such seizure or custody; and

(d) The actual
market value
of the property.

The applicant
must also give
a bond, executed to the adverse party in double the value of the
property
as stated in the affidavit aforementioned, for the return of the
property
to the adverse party if such return be adjudged, and for the payment to
the adverse party of such sum as he may recover from the applicant in
the
action.

Sec. 3. Order.

Upon the filing of
such
affidavit and approval of the bond, the court shall issue an order and
the corresponding writ of replevin describing the personal property
alleged
to be wrongfully detained and requiring the sheriff forthwith to take
such
property into his custody.

Sec. 4. Duty of the sheriff.

Upon receiving such
order,
the sheriff must serve a copy thereof on the adverse party, together
with
a copy of the application, affidavit and bond, and must forthwith take
the property, if it be in the possession of the adverse party, or his
agent,
and retain it in his custody. If the property or any part thereof be
concealed
in a building or enclosure, the sheriff must demand its delivery, and
if
it be not delivered, he must cause the building or enclosure to be
broken
open and take the property into his possession. After the sheriff has
taken
possession of the property as herein provided, he must keep it in a
secure
place and shall be responsible for its delivery to the party entitled
thereto
upon receiving his fees and necessary expenses for taking and keeping
the
same.

Sec. 5. Return of property.

If the adverse party
objects
to the sufficiency of the applicant’s bond, or of the surety or
sureties
thereon, he cannot immediately require the return of the property, but
if he does not so object, he may, at any time before the delivery of
the
property to the applicant, require the return thereof, by filing with
the
court where the action is pending a bond executed to the applicant, in
double the value of the property as stated in the applicant’s affidavit
for the delivery thereof to the applicant, if such delivery be
adjudged,
and for the payment of such sum to him as may be recovered against the
adverse party, and by serving a copy of such bond on the applicant.

Sec. 6. Disposition of property
by sheriff.

If within five (5)
days
after the taking of the property by the sheriff, the adverse party does
not object to the sufficiency of the bond, or of the surety or sureties
thereon; or if the adverse party so objects and the court affirms its
approval
of the applicant’s bond or approves a new bond, or if the adverse party
requires the return of the property but his bond is objected to and
found
insufficient and he does not forthwith file an approved bond, the
property
shall be delivered to the applicant. If for any reason the property is
not delivered to the applicant, the sheriff must return it to the
adverse
party.

Sec. 7. Proceedings where property
claimed by third person.

If the property taken
is
claimed by any person other than the party against whom the writ of
replevin
had been issued or his agent, and such person makes an affidavit of his
title thereto, or right to the possession thereof, stating the grounds
therefor, and serves such affidavit upon the sheriff while the latter
has
possession of the property and a copy thereof upon the applicant, the
sheriff
shall not be bound to keep the property under replevin or deliver it to
the applicant unless the applicant or his agent, on demand of said
sheriff,
shall file a bond approved by the court to indemnify the third-party
claimant
in a sum not less than the value of the property under replevin as
provided
in section 2 hereof. In case of disagreement as to such value, the
court
shall determine the same. No claim for damages for the taking or
keeping
of the property may be enforced against the bond unless the action
therefor
is filed within one hundred twenty (120) days from the date of the
filing
of the bond.

The sheriff shall
not be
liable for damages, for the taking or keeping of such property, to any
such third-party claimant if such bond shall be filed. Nothing herein
contained
shall prevent such claimant or any third person from vindicating his
claim
to the property, or prevent the applicant from claiming damages against
a third-party claimant who filed a frivolous or plainly spurious claim,
in the same or a separate action.

When the writ of
replevin
is issued in favor of the Republic of the Philippines, or any officer
duly
representing it, the filing of such bond shall not be required, and in
case the sheriff is sued for damages as a result of the replevin, he
shall
be represented by the Solicitor General, and if held liable therefor,
the
actual damages adjudged by the court shall be paid by the National
Treasurer
out of the funds to be appropriated for the purpose.

Sec. 8. Return of papers.

The sheriff must file
the
order, with his proceedings indorsed thereon, with the court within ten
(10) days after taking the property mentioned therein.

Sec. 9. Judgment.

After trial of the
issues,
the court shall determine who has the right of possession to and the
value
of the property and shall render judgment in the alternative for the
delivery
thereof to the party entitled to the same, or for its value in case
delivery
cannot be made, and also for such damages as either party may prove,
with
costs.

Sec. 10. Judgment to include
recovery against sureties.

The amount, if any, to
be
awarded to any party upon any bond filed in accordance with the
provisions
of this Rule, shall be claimed, ascertained, and granted under the same
procedure as prescribed in section 20 of Rule 57.

RULE
61

SUPPORT PENDENTE
LITE

Section 1. Application.

At the commencement of
the
proper action or proceeding, or at any time prior to the judgment or
final
order, a verified application for support pendente lite may be filed by
any party stating the grounds for the claim and the financial
conditions
of both parties, and accompanied by affidavits, depositions or other
authentic
documents in support thereof.

Sec. 2. Comment.

A copy of the
application
and all supporting documents shall be served upon the adverse party,
who
shall have five (5) days to comment thereon unless a different period
is
fixed by the court upon his motion. The comment shall be verified and
shall
be accompanied by affidavits, depositions or other authentic documents
in support thereof.

Sec. 3. Hearing.

After the comment is
filed,
or after the expiration of the period for its filing, the application
shall
be set for hearing not more than three (3) days thereafter. The facts
in
issue shall be proved in the same manner as is provided for evidence on
motions.

Sec. 4. Order.

The court shall
determine
provisionally the pertinent facts, and shall render such orders as
justice
and equity may require, having due regard to the probable outcome of
the
case and such other circumstances as may aid in the proper resolution
of
the question involved. If the application is granted, the court shall
fix
the amount of money to be provisionally paid or such other forms of
support
as should be provided, taking into account the necessities of the
applicant
and the resources or means of the adverse party, and the terms of
payment
or mode for providing the support. If the application is denied, the
principal
case shall be tried and decided as early as possible.

Sec. 5. Enforcement of order.

If the adverse party
fails
to comply with an order granting support pendente lite, the court
shall,
motu proprio or upon motion, issue an order of execution against him,
without
prejudice to his liability for contempt.

When the person
ordered to
give support pendente lite refuses or fails to do so, any third person
who furnished that support to the applicant may, after due notice and
hearing
in the same case, obtain a writ of execution to enforce his right of
reimbursement
against the person ordered to provide such support.

Sec. 6. Support in criminal
cases.

In criminal actions
where
the civil liability includes support for the offspring as a consequence
of the crime and the civil aspect thereof has not been waived, reserved
or instituted prior to its filing, the accused may be ordered to
provide
support pendente lite to the child born to the offended party allegedly
because of the crime. The application therefor may be filed
successively
by the offended party, her parents, grandparents or guardian and the
State
in the corresponding criminal case during its pendency, in accordance
with
the procedure established under this Rule.

Sec. 7. Restitution.

When the judgment or
final
order of the court finds that the person who has been providing support
pendente lite is not liable therefor, it shall order the recipient
thereof
to return to the former the amounts already paid with legal interest
from
the dates of actual payment, without prejudice to the right of the
recipient
to obtain reimbursement in a separate action from the person legally
obliged
to give the support. Should the recipient fail to reimburse said
amounts,
the person who provided through same may likewise seek reimbursement
thereof
in a separate action from the person legally obliged to give such
support.